by Matthew, via How Africa
In an interview with the BMTV television channel, [former president of France] said that the best way to preserve the health of the French economy is to keep the FCFA as the only currency usable in the former French colonies in Africa.
France can not allow its former colonies to create their own currency to have total control over their central banks . If this happens, it would be a catastrophe for the public treasury that will lead France to the rank of 20th world economic power. There is no question, therefore, of letting the French colonies of Africa have their own currencies
What is the CFA Franc?
The CFA franc is the name of two currencies common to several African countries, partly comprising the Central African franc zone (CEMAC) and the franc zone of West Africa ( UEMOA).
How does the CFA Franc work?
Principle 4 is the most technical. First, it should be noted that the Banque de France opens an account for each central bank (one for the BCEAO and one for the BEAC) and an account for each of the member states of the zones.
This is how it works: when a country in the CFA zone exports to a country other than France, it collects currencies that feed the Central Bank concerned. And this Central Bank has an obligation to transfer at least 50% of its foreign exchange earnings to its account opened at the Banque de France. So far, it is the Banque de France that manages 50% of the currencies of franc zone countries.
Finally, it should be made clear that the governance and execution bodies of this whole system (the Board of Directors, the Supervisory Board, etc.) include representatives of the French state who have a right of veto and are paid to preserve Interests of their country (which can not be criticized elsewhere).